Attorney at Law
Will Bankruptcy Eliminate My Foreclosure Debt?
People who come to me about bankruptcy are often in foreclosure or have recently been through foreclosure and their house was sold. When a house is sold at a foreclosure auction the amount of money generated by the sale is typically not enough to pay off the entire amount of money owed on the home loan. Thus, after the sale there remains something called a "deficiency balance," or the amount of money you owed on the loan minus whatever price the house sold for at auction. The deficiency balance typically amounts to tens of thousands of dollars.
Fortunately, deficiency balances are eliminated by bankruptcy, so you will not have to worry about the mortgage company coming after you any deficiency owed.